12th Nov 2013 08:25
LONDON (Alliance News) - Oxford Instruments PLC Tuesday said it it is in talks to acquire AIM-listed Andor Technology PLC for 500 pence a share in cash, or GBP160 million, as it also reported a marked improvement in trading conditions in the second quarter that it expects to lift second-half results.
The provider of technology tools and systems for industry and research said Andor is condiering its offer. The two sides have been in talks since early July and Oxford Instruments has already raised its offer from an original proposal of 420 pence a share, and then a subsequent offer in September of 470 pence a share.
"Oxford Instruments considers that the acquisition of Andor has significant industrial and commercial logic and that Andor would benefit from being part of the Oxford Instruments group," the company said in a statement.
"Andor's product portfolio is highly complementary to Oxford Instruments' Nanotechnology Tools division. Both Andor and Oxford Instruments have strong capabilities in selling to academic customers and, together, the companies could offer a broad range of high quality instrumentation to scientific users as well as leverage a more powerful distribution network," it added.
Separately, FTSE250-listed Oxford Instruments reported higher profits for the first half of its current financial year, as it booked higher financial income, although excluding this profits fell on a slight decline in revenues. However, the company said it had experienced a marked improvement in trading in the second quarter.
The company reported a pretax profit of GBP17.7 million for the six months to end-September, up from GBP16.3 million a year earlier. Excluding financing, profit fell to GBP20.6 million, from GBP22.5 million, as revenues declined to GBP166.3 million, from GBP170.8 million.
"The second quarter has shown a significant strengthening in both orders and revenues. This improvement in trading, supported by the strength of new product introductions and our actions to enhance operating efficiencies, should enable us to deliver an improved performance in the second half," Chief Executive Jonathan Flint said in a statement.
Oxford Instruments shares were up 11.5% at 1,368 pence early Tuesday, the leading gainer on the FTSE 250. Andor Technology shares were up 22.1% at 488.25 pence, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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